travel tech consulting presentation for amadeus cannes
TRANSCRIPT
The Always-Connected Traveller:How Mobile Will Transform the Future of Air Travel
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June 16, 2011
Connecting anywhere, anytime from any device
In the Office
Corporate booking and Expense
Wi-Fi and Wired Networks
In The Hotel
On the Plane
Wi-FI Connectivity
At Home
Wi-Fi Home Networks
At the Airport
The Era of the Always Connected Traveler Has Arrived
On the Road Full feature phones, Smartphones & Tablets
Source: Travel Tech Consulting Inc.
The new mobile devices facilitate continuous engagement.
Mobile’s Impact Across the Travel Life Cycle
Dream, inspire, plan & book
At Airport Check-In, Buy
Ancillary & Merchandise
Explore, Connect and Share
Share, Feedback. Dream
On Board Plan, Entertain, and Explore
Smartphone Usage Frequent & Younger Travelers Have Greater Smartphone Usage
• One third of frequent flyers and one quarter of 18-34 year olds utilize smartphones and tablets for booking compared to 16% for total travelers
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Innovative Features / Services
Q25. Which of the following innovative features or services would you use?
• Real time updates on flight status and baggage information are clearly innovative features desired by passengers.
• Passengers are also anxious to receive directions on mobile devices and are ready to embrace mobile check-in and self luggage tagging.
Source: J.D Power
Proactive Communication is the Key
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Overall Airline Experience: Importance of Every Step
Q19. When flying how important are the following 6 steps for your overall airline travel experience?Sample: Total, 2,978, WTD.
Respondent rate the Pre-Flight and In-Flight stages of their trip as
being the most important
Helping the passenger to choose, book and
board the flight without inconvenience is key to delivering satisfaction
Source: J.D Power
Pr-Flight Communication is a Major Opportunity
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Aspects of Travel For Improvement
Q21. Which of the following aspects of your airlines travel experience do you think could be improved?
Sample: Total, 2,978, WTD.
Please Note:Top 3 selections are combinedA multiple response set
The improved management of disruptions is key to passenger satisfaction.
Source: J.D Power
Disruption Management is the Key
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Check-In Method
Q10. How did you check-in for your flight?
Sample: Total, 2,978, WTD.
Q12. What is your preferred check-in method?
Last Check-In Method
*Variance between Preferred and Actual Purchase Channel
59.4%Diff.*
19.3%
13.7%
5.6%
1.8%
0.2%
(+9.4%)
(-13.2%)
(+1.0%)
(+2.2%)
(+1%)
(-0.3%)
Preferred Method
Asia Europe Latin America
Middle East
North America
Online with PC 55.7% 60.9% 45.4% 59.7% 62.7%
Check-In Desk 20.5% 25.2% 40.3% 26.5% 10.8%
Self-Serve Kiosk 11.7% 7.2% 8.4% 5.5% 20.2%
Mobile/Smartphone 7.5% 5.0% 4.3% 3.2% 5.6%
SMS/Text 4.5% 1.7% 1.6% 4.8% 0.3%
Other 0.0% 0.0% 0.0% 0.5% 0.4%
Preferred Method
Preference for a Mobile/smartphone check-in method is still niche, though Asia seems the best expansion point
Source: J.D Power
Mobile Check-In is Still at an Early Stage of Adoption
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Pre-Purchase Additional Services
Q15. Which additional airline services, if any, did you pre-purchase?
Sample: Total, 2,978, WTD.
Please Note:A multiple response set
Q16. How did you purchase your additional airline services?
Additional Service Channel
Source: J.D Power
Few Airlines Offer Mobile Pre-Purchase of Ancillary Services
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Asia Europe ME NALA
Sample: Asia 700, Europe 574, Latin America 700, Middle East 403, North America 601 & Total, 2,978, WTD.
Q28. Which social media sites do you use for travel related purposes?
Social Media
Total
% of Respondents Using Social Media Travel Related Sites
Source: J.D Power
Social Media is Impacting Markets Worldwide
Standard Functionality Matrix AF APAC APAC EU JP * LA ME NA SC
Booking
Schedules
Check-in
BCBP
Itinerary Mgmt
Disruption Mgmt
Loyalty Access
Loyalty Enroll
Book Loyalty
Seats
Flight Status
Airport Info
= Today= 6 mos.= 12 mos.= > 12 Mos. or No Plans
EU = Latin AmericaLA
= Asia / Pacific APAC
= European = AfricaAF
= North AmericaNA = Middle EastME
= Scandinavian SC
= Japan JP
* Domestic Japan only Source: Travel Tech Consulting Inc.
Ancillaries on Mobile
AF APAC APAC EU LA JP * ME NA SC
Baggage
Premium Seating
Premium Boarding
Pre-purchase meal
Club Access
On board Wi-FI
Deals and Offers
Other Cars & Hotels
FF – use pts at merchants
NP but looking at cars & hotels
Travel Insurance
Wheel-chair
Hotels & Cars (end of 2011)
= Today= 6 mos.= 12 mos.=>12 mos. - no current plans
EU = Latin AmericaLA
= Asia / Pacific APAC
= European = AfricaAF
= North AmericaNA = Middle EastME
= Scandinavian SC
= Japan JP
Source: Travel Tech Consulting Inc.* Domestic Japan only
Advanced Functionality AF APAC APAC EU LA JP * ME NA SC
LBS
Merchandising
Advanced Disruption
Social Media
Movement Tracking
Push Notifications
Voice Recognition
Video
Payments
NFC
Augmented Reality
EU = Latin AmericaLA
= Asia / Pacific APAC
= European = AfricaAF = North AmericaNA
= Middle EastME
= Scandinavian SC
= Japan JP= 6 mos.
= 12 mos.
= No Plans= < 24 mos. or under consideration
= Today.
= 12-24 mos.
Source: Travel Tech Consulting Inc.* Domestic Japan only
NFC at the Airport
Native App Development
AF APAC APAC EU LA JP ME NA SC
IOS
Android
RIM
Nokia
Windows 7
HP WebOS
EU = Latin AmericaLA
= Asia / Pacific APAC
= European = AfricaAF
= North AmericaNA = Middle EastME
= Scandinavian SC
= Japan JP= Today
= 6 mos.
= 12 mos.
=>24mos. Or No Plans
= < 24 mos. or under consideration
Source: Travel Tech Consulting Inc.
Does an Airline Need a Downloadable App?
• Most airlines interviewed have invested in native app development with the Apple iPhone as the primary platform of choice, followed closely by Google’s Android OS.
• This does not diminish the need to redesign and optimize for the mobile web, as viewing a normal website on even the most advanced smartphone can be a frustrating experience.
Use of 3rd Party Developers
AF APAC APAC EU LA JP ME NA SC
Small – Midsized Mobile Generalists
Travel Mobile Specialists
Large System Integrators
PSS/DCS/GDS providers
In House
EU = Latin AmericaLA
= Asia / Pacific APAC
= European = AfricaAF
= North AmericaNA = Middle EastME
= Scandinavian SC
= Japan JP= Used Today and Tomorrow
= Considering
= Not Used
Source: Travel Tech Consulting Inc.
• Many airlines use small to midsized mobile generalists who are based locally for their mobile web and app development.
• Many airlines rely on PSS/DCS/GDS providers to develop mobile solutions that are tightly integrated with their internal systems.
• The most common response from the airlines interviewed was the use of three out of four of these types of third parties all performing different functions.
What is the Role of 3rd Party Developers?
LinkedIn for Full Feature Phone Java App Facebook for Feature Phone Java App
Source: LinkedIn and Facebook
Strategy for Full Feature Phones
• No airlines interviewed considered the creation of an application for full feature phones.
• Full Feature phones still dominate much of the world and Web browsing on a full feature phone can be a frustrating experience.
• Social media sites such as Linked-In and Facebook have recognized the fact that a vast majority of the world is still using full feature phones and have created Java applications
Full Feature Downloadable Apps are an Option to Consider
What is Mobile Innovation? Real Time Information is Essential
• Innovation should be simply measured on how successfully technology is deployed and how it impacts the passenger experience.
• Emerging tends such as augmented reality and RFID bag tags are innovative only if their value is perceived as improving the passenger experience
Critical Functionality Issues
• Ability to operate multi-channels
• Full range of solutions covering all aspects of cycle
• Integration with airline IT
• Consistency across channels
• Common business logic
• Robust architecture
Defining an ROI for Mobile Development• Efficiencies
– Reduction in staffing– Reduction in kiosk hardware needed– More efficient use of staff time
• New revenue opportunities– Ancillary sales– Impulse buying– Last minute bookings
• Maintaining or improving loyalty among frequent travelers– Mobile web and apps development are as an extension of
overall marketing expenses and brand management. – How your brand is perceived on various platforms needs
to be consistently managed.
Baggage
Carry on Fee Flight AlertsCurbsideCheck-in
Baggage Delivery
Airline Logo Jacket
Noise-Cancelling Earphones
3D Glasses
Premium Wine
Premium Seating
Premium Boarding
Pre-Purchase of Meals
Club Access
Wi-Fi
Airport
Available Now or within 12 months Widespread 1- 2 Years Widespread 3- 5 Years
Mobile Functionality
Airline Mobile Travel Timeline
Ancillary Services and Merchandising
Mobile boarding pass and BCBP
Airport Information
SMS Disruption Mgmt
Booking Schedules
Itinerary Mgmt Seat maps Check Loyalty Balance
Flt Status
Deals & Offers
Mobile Electronic Airline VoucherPassenger
TrackingMobile
Roaming Agent
NFC mobile boarding
Mobile payments
Ground Operations
Personalized Ancillary and Merchandizing Offers
Baggage
Carry on Fee Flight AlertsCurbsideCheck-in
Baggage Delivery
Airline Logo Jacket
Noise-Cancelling Earphones
3D Glasses
Premium Wine
Premium Seating
Premium Boarding
Pre-Purchase of Meals
Club Access
Wi-Fi
Airport Coupon Offers
Location Based Offers
Ancillary Services
Interactive Voice Commands
Augmented Reality
Immersive Tablet Apps
Interactive Videos
Source: Travel Tech Consulting Inc.
Book Loyalty Enroll in Loyalty
Immediate Social Media Response
Summary
Challenges• All airlines are struggling to keep up with the
increasing fragmentation of platforms and the rapid acceleration of mobile innovation.
Opportunity• Airlines must find ways to exploit mobile capabilities to
drive new revenue and enhance customer loyalty.• Airlines will use more advanced mobile computing to
– Drive greater self-service capabilities – Create more immersive mobile experiences– Drive greater airport efficiencies – Deploy greater personalised marketing for merchandising
of products and services.
.
Thank You!Thank You!
[email protected]@traveltechnology.comTwitter: NormTravelTech Twitter: NormTravelTech
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